AP: New Jobless Claims Rise More Than Expected to 474k

From AP:

"Initial claims for unemployment insurance rose by 17,000 to a seasonally adjusted 474,000, the Labor Department said Thursday. That was above analysts' expectations of 460,000 new claims. Economists closely monitor initial claims, which reflect the pace of layoffs and companies' willingness to hire.

The four-week average of claims, which smooths fluctuations, fell to 473,750, its 14th straight decline and the lowest level since September 2008."

According to Ian Shepherdson, chief U.S. economist at High Frequency Economics, "If current trends continue, claims will fall below the 400,000 mark by February, which would signal that the economy is actually generating jobs. Even more optimistic economists say that net job gains could come in January or this month."

The number of people continuing to claim benefits fell by 303,000 to 5.16 million, the lowest level since February. The total unemployment benefit rolls have fallen in 11 of the past 12 weeks.

The so-called continuing jobless claims figure doesn't include millions of people who have used up the regular 26 weeks of benefits typically provided by states and are receiving extended benefits for up to 73 additional weeks.

President Obama has outlined a new jobs program that aims to knock unemployment back from its 26-year high. His plan proposes tax breaks to spur companies to hire new workers, increased bank lending to small businesses and a fresh raft of spending on infrastructure.